Marketplace Seller State Guidance

Many states have enacted Marketplace Facilitator/Provider laws that require the Marketplace Facilitator/Provider to remit tax on sales facilitated on behalf of Marketplace Sellers. The Marketplace Seller may also be required to register and file returns for sales and use tax purposes in that state. Review the chart below to help determine a state's registration and reporting requirements for a Marketplace Seller.

Are you a Marketplace Seller? A Marketplace Seller is generally a seller who sells products through a physical or electronic marketplace operated by a Marketplace Facilitator/Provider.

A Marketplace Seller may also be a “remote seller.” A Remote Seller is generally a seller that does not have a physical presence in a state but who sells products or services for delivery into that state.

A remote seller that sells through a Marketplace Facilitator and also sells products direct to its customers, is required to register to collect and remit sales tax in the state if its sales in that state meet that state’s Remote Seller Threshold.

If you have a physical presence in a state, you are not a Remote Seller and are generally required to register in that state regardless of the amount of sales.

If you know that you will be making direct sales into a state, you may choose to register to collect and remit that state’s sales tax at any time.

IMPORTANT NOTE: This is general guidance and is not legal advice. Nothing in this chart overrides an individual state’s laws. For specific state guidance, contact that state.

This chart provides you a summary of Marketplace Seller Registration and Reporting Requirements in the 24 Streamlined Member states and some nonmember states. For specific questions concerning your requirements in a state, contact that state.

State Registration Guidelines for:

Do you qualify for free sales tax calculation and reporting services? Learn more before you register

State Marketplace Seller Information	Is the Marketplace Facilitator required to collect and remit sales tax?	Is a seller who only sells through a Marketplace required to register and file returns if the Marketplace is required to collect and remit sales tax?	Does a remote seller include sales through a Marketplace Facilitator in the seller's Remote Seller's Threshold calculation?	If a marketplace seller is required to identify their sales through the marketplace separately from direct sales on a state’s sales tax return, how are those sales reported?
Alaska (updated 7/13/2021)	Yes	No	Yes	N/A
Arkansas (updated 6/22/2020)	Yes	No, a seller that has physical presence may want to register in order to purchase merchandise for resale without payment of tax.	No	N/A
Georgia (updated 9/1/2020)	Yes	No	No	N/A
Indiana (updated 6/22/2020)	Yes	No, unless the marketplace seller has physical presence in Indiana.	No	If a marketplace seller is otherwise required to register for Indiana sales tax due to physical nexus or meeting the remote seller threshold, then the seller should report marketplace sales as if they are exempt sales on the ST-103.
Illinois (updated 10/2/2020)
Iowa (updated 6/22/2020)	Yes	No	Yes	See the example under the “Remote sellers that make marketplace and non-marketplace Iowa sales” section of our marketplace facilitator guidance.
Kansas Notice 21-14 Marketplace Facilitators - Products (updated 11/19/2021)	Yes	No	Yes	MPS is not required to identify their sales through the MPF separately from direct sales on their sales tax return.
Kentucky (updated 10/20/2020)	Yes	No, if the marketplace facilitator is registered with KY and filing returns.	Yes	The marketplace retailer must include its marketplace sales sourced to Kentucky in total gross receipts on line one of its Sales and Use Tax Return for each reporting period. The sales facilitated and reported to Kentucky by marketplace providers should then be deducted as an "other deduction," and the name(s) and Kentucky sales tax account number(s) of the marketplace provider(s) that collected the tax should be indicated in the space provided.
Michigan (updated 6/22/2020)	Generally, Yes Facilitators are not required to collect and remit tax for use tax imposed on telecommunications services or if the facilitator facilitates a sale of hotel rooms/ accommodations if the third-party selling the rooms/ accommodations is itself registered for sales or use tax.	No	Yes	N/A
Minnesota (updated 6/22/2020)	Yes, unless there is an agreement between the parties that the marketplace seller is registered to collect MN sales tax.	No, if the marketplace seller does not have a physical presence in the state and the marketplace facilitator is required to collect the sales and use tax. Yes, if the marketplace seller has physical presence in Minnesota.	Yes, all retail sales are included in the calculation.
Nebraska (updated 6/22/2020)	Yes	Yes, all remote sellers who exceed a filing threshold must file a Nebraska and Local Sales and Use Tax Return, Form 10. The seller can claim a credit for any sales taxes collected and remitted by the multi-vendor marketplace platform with respect to such seller.	Yes	When reporting sales and tax on the Nebraska Sales Tax Return, Form 10, the marketplace seller must include all Nebraska sales made or facilitated by the business or by a Marketplace Facilitator in their total sales. Marketplace sellers may include in the deduction section sales made through a Marketplace Facilitator that is collecting and remitting sales tax on the remote sellers’ behalf to arrive at Nebraska net taxable sales. Also, on the Form 10, the marketplace seller must report the total dollar amount of their Nebraska sales made through a Marketplace Facilitator in the “Multivendor Marketplace Platform (MMP) Users Only” section of the Form 10.
Nevada (updated 6/22/2020)	No, a marketplace facilitator is not required to collect and remit sales and use tax if: 1. they have entered into a written agreement whereby the marketplace seller agrees to assume responsibility for the collection and remittance of tax on sales made through the marketplace facilitator; and 2. the marketplace seller is registered with the Department of Revenue to collect sales and use taxes on retail sales made by the marketplace seller.	No	Yes	N/A
New Jersey (updated 6/22/2020)	A marketplace facilitator is required to collect and remit Sales Tax on sales made through the marketplace facilitator, even if the marketplace seller is registered with New Jersey for the collection and remittance of Sales Tax. However, a marketplace facilitator and marketplace seller are permitted to enter into an agreement with each other regarding the collection and remittance of Sales Tax.	A remote seller that is over the economic nexus threshold, but sells solely through one or more marketplaces must register, but may request to be placed on a non-reporting basis for Sales Tax by completing Form C-6205-ST, since the marketplace facilitator is required to collect the tax on all marketplace transactions. A remote seller that is under the economic threshold is not required to register. A seller with physical presence in New Jersey that only sells through a marketplace must register, but may request to be placed on a non-reporting basis for Sales Tax by completing Form C-6205-ST, since the marketplace facilitator is required to collect the tax on all marketplace transactions.	Yes	N/A
North Carolina (updated 6/22/2020)	Yes	No	Yes, provided the sales are sourced to NC.	N/A
North Dakota (updated 6/22/2020)	Yes	No, if a marketplace seller who only sells through a marketplace facilitator does not have physical presence in the state. A marketplace seller who only sells through a marketplace facilitator but has physical presence in the state is required to register.	No	N/A
Ohio (updated 6/25/2020)	Yes	No. As long as all of the sales made by the marketplace seller are reported by and the Ohio tax collected by the marketplace facilitator, the marketplace seller does not need to register for a seller's use tax account or vendor's license. If the marketplace seller chooses to keep their account open and does not file returns, the marketplace seller would receive delinquency notices from the Department.	Yes, marketplace sellers will include all of their sales on Line 1, “Gross sales”, of the UST1 and then include the sales that were made on the marketplace, on which tax was collected by the facilitator, on Line 2, “Exempt sales” (in addition to true exempt sales), if any.	No, it is not required. Ohio does recommend that marketplace sellers include all their sales, including those facilitated by the facilitator, on line 1, “Gross sales”, of the Ohio sales tax return, UST 1. Then on line 2, “Exempt sales”, include the sales that were facilitated, and tax collected by the facilitator, in addition to their true exempt sales, if any.
Oklahoma Marketplace Legislation Remote Seller (updated 11/23/2021)	Yes	A marketplace seller who only sells through a marketplace facilitator but has physical presence in the state is not required to register.	No, if the marketplace facilitator is collecting Oklahoma tax on behalf of the marketplace seller, the marketplace facilitator sales are not included in the marketplace seller's threshold calculation.	Yes, the marketplace seller reports the gross receipts of all sales on the tax return and may claim a deduction for the sales through the marketplace in which the facilitator collected the tax.
Pennsylvania (updated 9/4/2020)	Yes	No	Yes	No, those sales are reflected in the nontaxable sales.
Rhode Island (updated 6/22/2020)	Yes	A marketplace seller who only sells through a marketplace facilitator but has physical presence in the state is required to register.	Yes	N/A
South Dakota (updated 6/22/2020)	Yes	Yes	Yes	No
Tennessee (updated 7/23/2020)	Yes, effective 10/1/2020. Two situations in which the facilitator does not collect and remit tax on behalf of its marketplace sellers. 1) Facilitator receives authorization from commissioner to not collect and remit tax because all its marketplace sellers are collecting and remitting Tennessee sales tax on the sales. 2) Facilitator and seller (registered for Tennessee sales and use tax with annual gross sales in excess of 1,000,000,000) contractually agree seller will collect and remit the tax and the commissioner is notified.	No, if a seller does not have physical presence in the state. Yes, if a seller has a location or physical presence in Tennessee. The seller will need to make purchases for resale. A Tennessee resale certificate authorizing the seller to make purchases for resale is issued in conjunction with registration for Tennessee tax. A taxpayer with a location or physical presence in Tennessee is liable for remitting use tax on untaxed purchases.	No	N/A
Texas (updated 9/4/2020)	Yes	No, if the marketplace seller does not have a physical presence in the state and the seller received and accepted in good faith a certification that the marketplace provider will collect the sales and use tax. Yes, if the marketplace provider seller has physical presence in the state. However, a remote seller whose only physical presence is having inventory in a marketplace facilitator's fulfillment center is not required to register and file a return.	No	No
Utah (updated 8/14/2020)	Yes	A marketplace seller who only sells through a marketplace facilitator and does not have physical presence is not required to register. A marketplace seller who only sells through a marketplace facilitator but has physical presence in the state is required to register.	No	N/A
Vermont (updated 6/22/2020)	Yes	No, note that marketplace seller may owe Vermont use tax based on physical presence activities. If marketplace seller does owe Vermont use tax, it is required to remit individually.	Yes	No
Washington (updated 6/22/2020)	Yes	Yes, if the marketplace seller has nexus requiring it to register and file returns for B&O tax.	Yes	The marketplace seller reports all of its retail sales on its tax return and may take a retail sales tax deduction for the sales through the marketplace in which the facilitator collected the tax. When taking the deduction, the marketplace seller identifies that it was for facilitated sales.
West Virginia (updated 6/22/2020)	Yes	A marketplace seller who only sells through a marketplace facilitator and does not have physical presence in not required to register. A marketplace seller who only sells through a marketplace facilitator but has a physical presence in the state is required to register.	Yes	Yes
Wisconsin (updated 6/22/2020)	Yes	No	Yes	N/A
Wyoming (updated 6/22/2020)	Yes	No	No	N/A